Microsoft reports executive salaries, bonuses

Robert Bach, president of Microsoft’s Entertainment and Devices division, was the company’s highest-paid executive in fiscal year 2009, taking home $6.24 million in salary, cash incentives and stock, Microsoft reported a financial filing Tuesday.

CEO Steve Ballmer was, out of Redmond’s five executive officers, the lowest-paid with $1.27 million total, according to the U.S. Securities and Exchange Commission filing. That was about $700,000 less than he was paid in fiscal year 2008.

Ballmer’s base salary was $665,833. He received $600,000 more in cash incentive payments.

Here’s a chart of the top five executives’ compensation, as reported by Microsoft.

Executive

Base salaryFY2009
FY2008

Cash incentives2009
2008

Stock awards2009
2008

Total2009
2008

Steve BallmerCEO

665,833
640,833

600,000
700,000

N/A
N/A

1,265,833
1,340,833

Chris LiddellCFO

561,667
541,667

595,018
420,000

2,379,982
3,828,668

3,536,667
4,790,335

Robert BachPres., EDD

641,667
620,833

1,120,010
675,000

4,479,990
6,988,861

6,241,667
8,284,694

Stephen ElopPres., MBD

641,667
279,948*

840,008
275,000*

3,359,992
3,483,535

4,841,667
4,038,483

Kevin TurnerCOO

641,667
620,833

952,019
1,000,000

3,807,981
6,988,861

5,401,667
8,609,694

* Elop was hired in January 2008, midway through fiscal year 2008. Because of that, he was the only one of the five who made more money in FY2009 than FY2008.

A Microsoft spokesperson said the compensations are generally lower because of the tough financial year. For FY 2009, Microsoft reported a 29 percent year-over-year drop in profit and a 17 percent drop in revenue.

The company also paid nearly $5.4 million in relocation expenses when it hired Elop. Microsoft purchased his house in California and assisted paying for his family’s temporary housing in Washington.

“We agreed to purchase his former home at a price equal to the average of three independent appraisals because he was unable to sell the home within a mutually agreed time,” Microsoft’s SEC filing states. “We also agreed with Mr. Elop that if the appraisal resulted in a loss on the sale of his prior home, we would pay him the difference between his home purchase price (adjusted for improvements) over the appraised value. Because of the precipitous decline in the California housing market during this period, the price at which the house ultimately sold was significantly below Mr. Elop’s purchase price adjusted for improvements.”